WashingtonFirst Bankshares Inc. Announces Earnings for the First Quarter 2013

WashingtonFirst Bankshares Inc. Announces Earnings for the First Quarter
2013
Business Wire
RESTON, Va. -- April 29, 2013
WashingtonFirst Bankshares Inc. (NASDAQ: WFBI) (the “Company”), the holding
company for WashingtonFirst Bank (the “Bank”), today reports unaudited
consolidated net income to common shareholders for the three months ended
March31,2013 of $1.4million ($0.18 per diluted common share) compared to
$0.7million ($0.21 per diluted common share) for the three months ended
March31, 2012. The Company's increase in net income is primarily the result
of the acquisition of Alliance Bankshares in December 2012, while the lower
earnings per diluted common share is primarily the result of the issuance of
new stock in connection with the acquisition. Net income also benefited from a
higher net interest spread and margin, as the company has been able to realize
lower rates on interest-bearing liabilities.
Shaza Andersen, President and CEO of the Company, said, “Our primary goal for
2013 is to capitalize upon the benefits we anticipated from the 2012
acquisition of Alliance Bank. I am thrilled to report that we are on plan
through the first quarter. The integration of Alliance Bank has proceeded
smoothly and we are looking forward to serving our expanded customer base in
Northern Virginia.”
For the Three Months Ended
March 31, 2013 March 31, 2012
Performance Ratios:
Return on average assets (1) 0.55 % 0.55 %
Return on average shareholders' equity (1) 5.61 % 5.53 %
Return on average common equity (1) 6.77 % 8.22 %
Yield on average interest-earning assets (1) 4.54 % 4.88 %
Rate on average interest-earning liabilities 0.87 % 1.31 %
(1)
Net interest spread (1) 3.67 % 3.57 %
Net interest margin (1) 3.99 % 3.91 %
Efficiency ratio 67.03 % 57.76 %
Per Share Data:
Basic earnings per common share (2) $ 0.19 $ 0.22
Fully diluted earnings per common share (2) $ 0.18 $ 0.21
Weighted average basic shares outstanding 7,570,091 3,271,999
(2)
Weighted average diluted shares outstanding 7,631,717 3,324,732
(2)
(1) Annualized.
(2) Retroactively adjusted to reflect the effect of all stock dividends.
The following summarizes other operating expenses in the consolidated
statements of operations for the three months ended March31,2013 and 2012:
For the Three Months Ended
March 31, 2013 March 31, 2012
(in thousands)
Insurance $ 25 $ 18
Professional fees 551 148
Advertising and promotional expenses 139 95
Postage, printing and supplies 55 42
Data processing 940 341
FDIC premiums 98 101
OREO 342 —
Directors' fees 50 37
Merger expenses 8 —
Other 237 100
Other expenses $ 2,445 $ 882
Balance Sheet and Capital
As of March31, 2013 and December31, 2012, total assets were $1.1billion.
Total loans increased $11.1million (1.5%) from December31, 2012 to March31,
2013. Total deposits decreased $80.6million (8.3%) from December31, 2012 to
March31, 2013. Tier 1 capital increased $3.0million to $108.0million as of
March31, 2013, compared to $105.0million as of December31, 2012.
March 31, 2013 December 31, 2012
Capital Ratios:
Total risk-based capital ratio 14.00 % 13.77 %
Tier 1 risk-based capital ratio 12.96 % 12.71 %
Tier 1 leverage ratio 10.34 % 16.39 %
Tangible common equity to tangible 7.78 % 6.97 %
assets
Per Share Capital Data:
Book value per common share (1) $ 11.33 $ 11.15
Tangible book value per common share $ 10.80 $ 10.62
(1)
Common shares outstanding (1) (2) 7,632,928 7,507,254
(1) Retroactively adjusted to reflect the effect of all stock dividends.
(2) Includes estimated number of shares for the 5% stock dividend payable in
May 2013.
Asset Quality
Non-performing assets totaled $21.6million as of March31, 2013, compared to
$22.1million as of December31, 2012. Net charge-offs were $1.2million or
0.63% of average loans for the three months ended March31, 2013, compared to
$0.4million or 0.38% of average loans for the three months ended March31,
2013.
March 31, 2013 December 31, 2012
(in thousands)
Non-accrual loans $ 13,376 $ 15,615
Trouble debt restructurings still 5,577 3,036
accruing
Asset-backed debt securities 51 106
Other real estate owned 2,569 3,294
Total non-performing assets $ 21,573 $ 22,051
The Company’s allowance for loan losses was 0.81% of total gross loans as of
March31, 2013, compared to 0.83% at December31,2012. Of the $764.4million
in gross loans outstanding as of March31, 2013, $255.6million or 33.4% were
recorded on the books at fair value in conjunction with the acquisition of
Alliance in December 2012 and have an aggregate discount on the books of
$7.8million as of March 31, 2013.
About The Company
The Company is the parent company of the Bank, a $1.1billion bank
headquartered in Reston, VA. With 16 offices in the greater Washington, DC
metropolitan area, WashingtonFirst is a community oriented bank that provides
competitive financial services to local businesses and consumers.
Cautionary Statements About Forward-Looking Information
This press release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995, including statements of
the goals, intentions, and expectations of the Company as to future trends,
plans, events, results of operations and policies and regarding general
economic conditions. These forward-looking statements include, but are not
limited to, statements about the Company’s goals, intentions, earnings and
other expectations; estimates of risks and of future costs and benefits;
assessments of probable loan and lease losses; assessments of market risk; and
statements of the ability to achieve financial and other goals. Additional
forward-looking statements are included regarding the merger between the
Company and Alliance. In some cases, forward-looking statements can be
identified by use of words such as “may,” “will,” “anticipates,” “believes,”
“expects,” “plans,” “estimates,” “potential,” “continue,” “should,” and
similar words or phrases. These statements are based upon the beliefs of the
management of the Company as to the expected outcome of future events, current
and anticipated economic conditions, nationally and in the Company’s market,
and their impact on the operations, assets and earnings of the Company,
interest rates and interest rate policy, competitive factors, judgments about
the ability of the Company to successfully integrate its operations with
Alliance, the ability to avoid customer dislocation during the period leading
up to and following the merger, and other conditions which by their nature,
are not susceptible to accurate forecast and are subject to significant
uncertainty. Because of these uncertainties and the assumptions on which this
discussion and the forward-looking statements are based, actual future
operations and results in the future may differ materially from those
indicated herein. Readers are cautioned against placing undue reliance on such
forward-looking statements. Past results are not necessarily indicative of
future performance. The Company assumes no obligation to revise, update, or
clarify forward-looking statements to reflect events or conditions after the
date of this release.
Additional documents are available free of charge at the SEC’s web site,
www.sec.gov and on the Company’s website at www.wfbi.com under the tab “About
the Bank” and then under the heading “Investor Relations” or by contacting the
Company’s Investor Relations Department at 11921 Freedom Drive, Suite 250,
Reston, VA 20190. You may also read and copy any reports, statements and other
information filed with the SEC at the SEC’s Public Reference Room at 100 F
Street, NE, Washington DC. Information about the operation of the SEC Public
Reference Room may be obtained by calling the SEC at 1-800-SEC-0330.
Information about the directors and executive officers of the Company is set
forth in the Company’s proxy statement dated April30,2013 available on the
SEC’s website at www.sec.gov.
WashingtonFirst Bankshares, Inc.
Consolidated Balance Sheets
(unaudited)
March 31, 2013 December 31, 2012
(in thousands)
Assets:
Cash and cash equivalents:
Cash and due from bank balances $ 4,064 $ 4,521
Federal funds sold 138,411 208,476
Interest bearing balances 9,965 11,210
Cash and cash equivalents 152,440 224,207
Investment securities, 115,503 134,598
available-for-sale, at fair value
Other equity securities 3,152 3,623
Loans:
Loans held for investment, at amortized 764,413 753,355
cost
Allowance for loan losses (6,176 ) (6,260 )
Total loans, net of allowance 758,237 747,095
Premises and equipment, net 3,319 3,519
Intangibles 4,007 4,029
Deferred tax asset, net 11,523 11,419
Accrued interest receivable 3,230 3,424
Other real estate owned 2,569 3,294
Bank-owned life insurance 5,055 5,010
Other assets 5,347 7,600
Total Assets $ 1,064,382 $ 1,147,818
Liabilities and Shareholders' Equity:
Liabilities:
Non-interest bearing deposits $ 223,470 $ 294,439
Interest bearing deposits 668,564 678,221
Total deposits 892,034 972,660
Other borrowings 17,252 14,428
FHLB advances 35,442 40,813
Long-term borrowings 9,725 9,682
Accrued interest payable 693 2,012
Other liabilities 4,970 6,703
Total Liabilities 960,116 1,046,298
Shareholders' Equity:
Preferred stock:
Series D - 17,796 shares issued and 89 89
outstanding, 1% dividend
Additional paid-in capital - preferred 17,707 17,707
Common stock:
Common Stock Voting, $0.01 par value,
50,000,000 shares authorized, 6,225,303 63 61
and 6,099,629 shares outstanding,
respectively
Common Stock Non-Voting, $0.01 par value,
10,000,000 shares authorized, 1,044,152 10 10
shares outstanding
Additional paid-in capital - common 81,962 80,460
Accumulated earnings 4,635 3,226
Accumulated other comprehensive loss (200 ) (33 )
Total Shareholders’ Equity 104,266 101,520
Total Liabilities and Shareholders' $ 1,064,382 $ 1,147,818
Equity
WashingtonFirst Bankshares, Inc.
Consolidated Statements of Operations
(unaudited)
For the Three Months Ended
March 31, 2013 March 31, 2012
(in thousands, except per share amounts)
Interest income:
Interest and fees on loans $ 10,899 $ 6,195
Interest and dividends on 649 384
investments
Total interest income 11,548 6,579
Interest expense:
Interest on deposits 1,159 1,015
Interest on borrowings 373 206
Total interest expense 1,532 1,221
Net interest income 10,016 5,358
Provision for loan losses 1,100 1,221
Net interest income after provision 8,916 4,137
for loan losses
Non-interest income:
Service charges on deposit accounts 131 118
Other operating income 363 300
Total non-interest income 494 418
Non-interest expense:
Compensation and employee benefits 3,243 1,811
Premises and equipment 1,357 643
Other operating expenses 2,445 882
Total other expenses 7,045 3,336
Income before provision income 2,365 1,219
taxes
Provision for income taxes 912 469
Net income 1,453 750
Preferred stock dividends and (44 ) (44 )
accretion
Net income available to common $ 1,409 $ 706
shareholders
Earnings per common share:
Basic earnings per common share (1) $ 0.19 $ 0.22
Fully diluted earnings per common $ 0.18 $ 0.21
share (1)
(1) Retroactively adjusted to reflect the effect of all stock dividends.
Contact:
WashingtonFirst Bankshares Inc.
Matthew R. Johnson, 703-840-2422
Executive Vice President & Chief Financial Officer
MJohnson@WFBI.com
www.WFBI.com